Finion Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-in- process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,544,000, respectively. Actual results for the year follow. Direct material used Direct labor Indirect material used Indirect labor Factory depreciation Factory insurance Factory utilities Selling and administrative expenses Total $ 5,550,000 4,350,000 63,000 2,860,000 1,740,000 57,000 828,000 2,160,000 $17,608,000 Job no. 2077 was completed in January 20x2; there was no work in process at year-end. All jobs produced during 20x2 were sold with the exception of job no. 2143, which contained direct-material costs of $154,000 and direct-labor charges of $85,000. The company charges any under- or overapplied overhead to Cost of Goods Sold. 3. Compute the amount that the company would disclose as finished-goods inventory on the December 31, 20x2, balance sheet.
Finion Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-in- process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,544,000, respectively. Actual results for the year follow. Direct material used Direct labor Indirect material used Indirect labor Factory depreciation Factory insurance Factory utilities Selling and administrative expenses Total $ 5,550,000 4,350,000 63,000 2,860,000 1,740,000 57,000 828,000 2,160,000 $17,608,000 Job no. 2077 was completed in January 20x2; there was no work in process at year-end. All jobs produced during 20x2 were sold with the exception of job no. 2143, which contained direct-material costs of $154,000 and direct-labor charges of $85,000. The company charges any under- or overapplied overhead to Cost of Goods Sold. 3. Compute the amount that the company would disclose as finished-goods inventory on the December 31, 20x2, balance sheet.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter1: Introduction To Cost Accounting
Section: Chapter Questions
Problem 13E: Cycle Specialists manufactures goods on a job order basis. During the month of June, three jobs were...
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Finion Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-in-
process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at
$156,800. There was no finished-goods inventory on this date.
Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is
the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted
totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,544,000, respectively. Actual results
for the year follow.
Direct material used
Direct labor
Indirect material used
Indirect labor
Factory depreciation
Factory insurance
Factory utilities
Selling and administrative expenses
Total
$ 5,550,000
4,350,000
63,000
2,860,000
1,740,000
57,000
828,000
2,160,000
$17,608,000
Job no. 2077 was completed in January 20x2; there was no work in process at year-end. All jobs produced during 20x2
were sold with the exception of job no. 2143, which contained direct-material costs of $154,000 and direct-labor charges
of $85,000. The company charges any under- or overapplied overhead to Cost of Goods Sold.
3. Compute the amount that the company would disclose as finished-goods inventory on the December 31, 20x2, balance sheet.
Answer is complete but not entirely correct.
Finished-goods inventory $ 353,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc6b3292-544f-431f-ac6e-443381875618%2Fabf4c81f-1bbc-4964-8655-1950712712c0%2Fy540sr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
Finion Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-in-
process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at
$156,800. There was no finished-goods inventory on this date.
Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is
the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted
totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,544,000, respectively. Actual results
for the year follow.
Direct material used
Direct labor
Indirect material used
Indirect labor
Factory depreciation
Factory insurance
Factory utilities
Selling and administrative expenses
Total
$ 5,550,000
4,350,000
63,000
2,860,000
1,740,000
57,000
828,000
2,160,000
$17,608,000
Job no. 2077 was completed in January 20x2; there was no work in process at year-end. All jobs produced during 20x2
were sold with the exception of job no. 2143, which contained direct-material costs of $154,000 and direct-labor charges
of $85,000. The company charges any under- or overapplied overhead to Cost of Goods Sold.
3. Compute the amount that the company would disclose as finished-goods inventory on the December 31, 20x2, balance sheet.
Answer is complete but not entirely correct.
Finished-goods inventory $ 353,200
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